Longwood has relied on carted water for six months, after January's fires damaged the town's water treatment plant and the Nine-Mile Creek catchment that supplies it.
GVW announced on Tuesday, July 28 that it had engaged engineering and professional services company Jacobs to carry out technical and planning works assessing the Seymour option.
GVW general manager of planning and assets Regan Flanagan said the investigation was a key step in understanding whether the option could meet Longwood's future water needs.
"The Longwood fires had a significant impact on the town's water supply and on the quality of untreated water within the catchment, highlighting the need for a more resilient solution," Ms Flanagan said.
"We're now investigating whether supplying treated water from Seymour via Avenel could be a suitable long-term option."
No decisions have been made on Longwood's future supply, with the investigation to determine feasible options and identify any opportunities or constraints before decisions are considered.
Over the coming months, residents may notice surveyors and specialist crews working in and around Longwood, Avenel and surrounding areas.
The work may include surveying, heritage and environmental assessments, and other field investigations to better understand local conditions and potential pipeline routes.
"This is a normal part of early project planning and helps us build a clear picture of what may be possible and best for Longwood before any decisions are made," Ms Flanagan said.
Where investigations require access to private property, GVW will work with landholders to discuss proposed activities and answer questions before entering land.
Before the fires, Longwood's water was drawn from the Nine-Mile Creek catchment and treated at the town's plant.
Rainfall after the fires washed sediment and other contaminants into the Nine-Mile Creek Reservoir, leaving the water unsuitable for treatment, while the plant itself was also damaged.
Two additional water storage tanks have been built to ensure reliability of the carted supply, which GVW has previously said will continue for as long as required.
Residents can stay informed and receive project updates at watermatters.gvwater.vic.gov.au/longwood-water-supply